Oracle Employee Stock Purchase Plan: Worth It?
I understand this depends on many market factors. But in general is the ESPP at Oracle worth it? Internal documents seems to be just promoting the pros.
5% or 15% discount ?
5
Crap, Generally it’s 15% discount during offer time !
I don’t think so, 5% is too low. I’d rather put that money in QQQ
It would be free 5% PLUS yearly gains. And right now it’s at 31%. Together that’s over 36%
Not worth it! There are better investment opportunities elsewhere! 5% discount is not worth it imo
I’m also maxing out my ESPP but not really for the discount. I just want stock in the company. Additional benefits are, yes, 5% immediate discount plus whatever appreciation over time which I THINK ORCL is well positioned to thrive 😎 OCI alone = multicloud offerings, NVIDIA/AMD partners, embracing Gen/AI etc
For the past 2 years, my maxed espp has been outperforming vested rsus
Take the same money and put it in nvidia you would have made much more
I maxed out my ESPP to force savings: won’t notice if just extra hundreds in paycheck (and probably will just spend it), but I noticed the thousands when it shows up in Fidelity and it forces me to think about where to invest these thousands.
Useless, just invest that amount monthly in VOO.
What’s VOO
ETF tracking S&P 500
Best way to loose tax paid money
I think the only thing it's got going for it is 5% discount for almost immediate selling. Which means as long as there is no violent movement between buy date and date it shows up on fidelity (2 business days typically) you make 5 %. In reality it's over 22% a year if you take into account your DCAing and not putting in all the money at once. PS. I am maxing out my ESPP
Can you explain what you mean by the 22%? How did u come up with this ROI
The investing channel has a spreadsheet that explains this better but as a gist - you are only investing say 1000 each month for a 6 month period and get 5% off. Which means for a year you get 10% off (interest). Simply put, if you invest 10000$ a year into ORCL via ESPP, you'll get stock worth 11000. Now note how when you invest, you're not putting all your money in at once, this is similar to DCA, recurring deposit etc. in a 6 month period say March through September, you invest 1k in March and 1k in September but for the 1k from sep you get 5% instantly while for the 1k from March you get 5% in 6months. If you average these 12 biweekly investments (1 a paycheck) you'll hit a 10%~ every 6 months gain rate. 2times a year so little over 20. As a simple test, imagine you invested 100$ a month and at the end of the year you made 1260. How much % would you consider that to be? That's your answer (for comparison 100$ a month in a HYSA at 5% yield will give you 1228 )